ETF Securities confirms tax treatment of its funds following recent reports

Responding to recent reports that UK investors holding ETFs without ‘reporting’ or ‘distributor’ status are liable to pay income tax at 50%, ETF Securities confirms its products do not fall in this bracket. ETF Securities has applied for and has achieved ‘distributor’ or ‘reporting’ status for all its products listed prior to June 2010. This protects the tax treatment of ETF Securities’ products as capital gains eligible at rates of 18% or 28%.

For ETF Securities’ products listed since June 2010, application for Reporting Fund status has either been submitted, or will be submitted within 3 months of their initial listing and, based on its experience, ETF Securities fully expects to receive Reporting Fund status for those products as well. For all products to be listed in the future, we intend to apply for Reporting Fund status within this 3 months timeframe.

Commenting, Hector McNeil, Managing Partner at ETF Securities, said:

“Distributor Fund status and its successor, Reporting Fund status, provide tax transparency by segregating any income from capital returns on investments falling under the respective regimes. Investors need transparency on how Exchange Traded Products (ETPs) are taxed and the treatment of capital and income returns from investments in offshore vehicles. Given this tax efficiency, ETFS have always ensured our products have achieved this status. It removes the ambiguity that can affect some products. ETFS however cannot confirm the position of other providers ETPs. Investors should contact the relevant provider directly.”


Notes to Editor:

1. ETF Securities has over 180 products listed on exchanges around the world. A full break down of ETF Securities’ products list can be viewed here: www.etfsecurities.com/en/securities/etfs_securities.asp



2. For ETFs launched since June 2010, application for Reporting Fund status has either been submitted or will be submitted within 3 months of their initial listing. These products are:

Equity ETFS (ETFX)

3. ETF Securities’ use of the term exchange traded products (ETPs) incorporates all types of exchange-traded funds (ETFs), exchange-traded commodities (ETCs) and exchange traded notes (ETNs).



4. ETF Securities has three exchange-traded platforms: Commodity ETCs, Currency ETCs and Equity ETFs:
   
   

To learn more about ETF Securities go to: www.etfsecurities.com

For further information, please contact: ETF Securities’ press office on:
Tel: +44 (0) 20 7448 4330
Email: press@etfsecurities.com

Disclaimer: This press release was issued by ETF Securities Marketing LLP ("ETFSM") for journalists in UK, Germany, Italy, France and The Netherlands. The products discussed in this document are issued by ETFS Metal Securities Limited ("MSL"), Gold Bullion Securities Limited ("GBS"), ETFS Commodity Securities Limited ("CSL"), ETFS Foreign Exchange Limited ("FXL") and ETFS Oil Securities Limited ("OSL") (together, the "Issuers") and each are regulated by the Jersey Financial Services Commission. Certain products discussed are issued by ETFS Fund Company plc (the "Company"), which is an open-ended investment management company with variable capital having segregated liability between its funds and is regulated but the Financial regulator in Ireland. The United Kingdom Listing Authority is the ‘home regulator' to MSL, GBS, CSL, OSL and FXL for purposes of passporting their prospectuses under the Prospectus Directive. The communication of this press release is not being made by, and this press release has not been approved by, an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000 (the "FSMA"). Accordingly this press release is not being distributed to, and must not be passed on to, the general public in the United Kingdom.

This document includes independent market commentary prepared by ETFSM based on publicly available information. It does not constitute financial product advice nor should be construed as an offer for sale or utilised as the basis for any investment decision. Although ETFSM endeavours to ensure the accuracy of the content in this communication, ETFSM does not warrant or guarantee its accuracy or correctness. Where ETFSM has expressed its own opinions related to product or market activity, these views may change. The third party data providers used to source the information in this communication make no warranties or representation of any kind relating to the accuracy, completeness, or timeliness of the data provided nor shall they have liability for any damages or any kind relating to such data.

This press release appears as a matter of record only and does not constitute an offer to sell or an invitation to purchase any securities. Important information is contained in the relevant company's prospectus and other documents, copies of which can be obtained by calling +44 (0)20 7448 4330 or by e-mail at info@etfsecurities.com.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR TO THE GENERAL PUBLIC IN THE UNITED KINGDOM OR JERSEY. THIS PRESS RELEASE IS NOT A PROSPECTUS BUT AN ADVERTISEMENT AND INVESTORS SHOULD NOT SUBSCRIBE FOR ANY TRANSFERABLE SECURITIES REFERRED TO IN THIS PRESS RELEASE EXCEPT ON THE BASIS OF INFORMATION IN THE PROSPECTUS.

Index disclaimer: The Morgan Stanley Indices are the exclusive property of Morgan Stanley & Co. Incorporated ("Morgan Stanley"). Morgan Stanley and the Morgan Stanley index names are service mark(s) of Morgan Stanley or its affiliates and have been licensed for use for certain purposes by the Issuer and ETF Securities Limited. The financial securities referred to herein are not sponsored, endorsed, or promoted by Morgan Stanley, and Morgan Stanley bears no liability with respect to any such financial securities. The Prospectus contains a more detailed description of the limited relationship Morgan Stanley has with the Issuer and any related financial securities. No purchaser, seller or holder of this product, or any other person or entity, should use or refer to any Morgan Stanley trade name, trademark or service mark to sponsor, endorse, market or promote this product without first contacting Morgan Stanley to determine whether Morgan Stanley's permission is required. Under no circumstances may any person or entity claim any affiliation with Morgan Stanley without the prior written permission of Morgan Stanley.